Tariffs Prompt Price Hikes, Surcharges as Businesses (and Franchises) Brace for Rising Costs

A wave of new U.S. tariffs is prompting businesses across the country to adjust their pricing models — and franchisees are feeling the ripple effects. As CBS News reported in an April 11 article by Megan Cerullo, companies of all sizes are beginning to pass along added costs to consumers through direct price increases or “tariff surcharges,” a move they say is necessary to stay afloat amid escalating trade tensions.

President Donald Trump’s administration announced new levies, including a 10% tariff on all imports and up to 145% on some goods from China. In response, China hiked its duties on U.S. exports from 84% to 125%. Though the tariffs’ long-term impact on the economy is still uncertain, many businesses are taking immediate action.

Labucq, a high-end footwear company, said on social media it would raise prices by 10% on April 15 and another 10% on May 7 due to a 20% U.S. tariff on imports from the European Union. Dame, a sexual wellness brand that manufactures most of its products in China, added a $5 “Trump tariff surcharge” at checkout.

“The intention of adding the Trump tariff surcharge as a line item at checkout was to remind people that this is an extra tax on us,” said Dame CEO Alexandra Fine. “I wanted people to understand why it’s more expensive — that it’s because of political decisions that were made.”

Franchises, particularly those relying on global supply chains, are in a precarious position. Franchisees are often contractually bound to pricing or supply agreements, limiting their flexibility to absorb sudden cost increases. Whether it’s furniture, electronics or specialty goods, many franchised brands may soon face pressure to implement surcharges or raise prices — moves that can be challenging for owners trying to maintain local customer loyalty.

Pre-tariff promotions are also gaining traction. Spice importer Burlap & Barrel offered 20% off all products in a flash sale, citing the tariffs as a threat to its ability to support smallholder farmers. “We thought it'd be a routine springtime promotion, but in the last few days it has turned into something very, very different,” the company wrote in an Instagram post.

As CBS News notes, many consumers are responding by stockpiling goods, while businesses brace for ongoing uncertainty.

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